How long must a Management Recruiters franchisee pay Continuing Fees?

them to us.

Notes:

1. Beginning when you open your initial Location of the Franchise Business, and for the entire term of the Franchise Agreement, you must pay us Continuing Fees. These Continuing Fees are of two types: The Recruiter Continuing Fee and the Contract Staffing Continuing Fee.

The Recruiter Continuing Fee is a fee on all Net Cash In in the following amounts:

• Nine percent (9%) on the first five hundred thousand dollars ($500,000.00) of Net Cash In;
• Seven percent (7%) on Net Cash In from five hundred thousand and one dollars ($500,001.00) to one million dollars ($1,000,000.00);
• Five percent (5%) on Net Cash In from one million and one dollars ($1,000,001.00) to two million dollars ($2,000,000.00);
• Three percent (3%) on Net Cash In that exceeds two million and one dollars ($2,000,001.00).

The Contract Staffing Continuing Fee is an amount equal to the sum of 4.5% of Contract Staffing Payroll plus 18% of the Gross Margin for temporary and contract employee staffing of the Franchise Business. Contract Staffing Payroll means any gross wages funded by Hire Quest, L.L.C. or its affiliates on your behalf with respect to the tempo

Source: Item 6 — OTHER FEES (FDD pages 16–23)